Natural fatty acids obtained from coconut oil and palm kernel oil are saturated, medium-chain oleochemicals which include myristic acid, capric acid, lauric acid, and caprylic acid. Non-toxic and possessing a long shelf life, these substances are expected to witness high demand across numerous applications on a global scale. The easy availability of palm kernel and coconut oil across several regions of the world has made the product a cost-efficient solution.

Moreover, natural fatty acids obtained from coconut oil and palm kernel oil are not only biodegradable but also renewable. Consequently, the global market for natural fatty acids is likely to soar. However, presence of pricing issues and fluctuations in the prices of raw materials can restrict market growth. Some of the most widely used types of fatty acids are distilled fatty acids, fractionated fatty acids, stearic acids, and polyunsaturated acids.

According to Transparency Market Research (TMR), the global market for natural fatty acids was valued at US$5.32 bn in 2014. Steadily advancing at a CAGR of 4.6%, the global natural fatty acids market is expected to reach US$7.97 bn by the end of 2023.

Asia Pacific held the largest share in the global market for natural fatty acids in 2014. It is expected to register the fastest growth over the forthcoming period. The increasing purchasing power of people, increasing awareness pertaining to personal care and well-being, and rising inclination towards natural ingredients across several industries have catapulted the region to the forefront of the global market. The easy availability of coconut and palm kernel oil across Southeast Asia is a key growth driver of the market. China, Malaysia, and India are likely to emerge as key contributors.

While North America displays moderate growth, Europe ranked second in the global market for natural fatty acids in terms of revenue in 2014. The countries in the Middle East and Africa are slated to exhibit attractive opportunities thanks to the availability of raw materials, vast consumer pool, and widespread consumption of natural fatty acids. Nigeria and Turkey might surface as key contributors of the market in the Middle East and Africa.

By End user, Detergents Expected to Gain a Place in the Sun

The global market for natural fatty acids can be segmented into personal care, rubber, detergents, plastics, oil and gas, pharmaceutical, and textile. In 2014, detergents emerged as the dominant end-use industry segment of the global market for natural fatty acids. The notable growth of this segment can be attributed to the extensive use of natural fatty acids in households, fabric care, and institutional and industrial detergents as a surfactant.

The personal care industry worldwide is another segment bearing vast potential for growth. It is likely to emerge as the fastest growing end-use segment in the forthcoming years. Numerous hair care and skin care product manufacturers are switching to nature-based solutions. As a result, to ensure superior biosafety and biocompatibility, a number of beauty product brands are adopting natural fatty acids.

Natural fatty acids are also being increasingly used in the plastics industry as a lubricant and plasticizer. These acids also play a key role in the process of rubber vulcanization. Also, the pharmaceutical industry is acknowledging the potential of natural fatty acids as antimicrobial agents. Spurred by these factors the demand for palm kernel oil and coconut oil-based natural fatty acids will continue rising through the forecast period.

Kuala Lumpur Kepong Berhad, Wilmar International Ltd, Emery Oleochemicals, OLEON NV, and Kao Corporation are some of the leading companies operating in the global market for natural fatty acids market.

Palm kernel oil and coconut oil based natural fatty acids are medium-chain oleochemicals that exhibit excellent performance as surfactants. Natural fatty acids have potential industrial use as an environmentally sustainable material owing to their extraction from natural and renewable sources. Natural fatty acids are employed in numerous end-user industries such as detergents, personal care, plastics, rubber, and others. Asia Pacific dominated the natural fatty acids market in terms of demand, followed by Europe and North America in the past few years. Asia Pacific is expected to maintain its leading position in the market during the forecast period.

The report estimates and forecasts the palm kernel oil and coconut oil based natural fatty acids market on the global, regional, and country level. The study provides forecast from 2015 to 2023 based on volume (kilo tons) and revenue (US$ Mn). The report comprises an exhaustive value chain analysis, which provides a comprehensive view of the market. Value chain analysis also offers detailed information about value addition at each stage. The study includes drivers and restraints for the natural fatty acids market along with their impact on demand during the forecast period. The report analyzes opportunities in the natural fatty acids market on the global and regional level. Drivers, restraints, and opportunities mentioned in the report are justified through quantitative and qualitative data. These have been verified through primary and secondary resources.

The report includes Porter’s Five Forces Model to determine the degree of competition in the natural fatty acids market. The report comprises a qualitative write-up on market attractiveness analysis, wherein end-users and countries have been analyzed based on attractiveness. Growth rate, market size, raw material availability, profit margin, impact strength, technology, competition, and other factors (such as environmental and legal) have been evaluated in order to derive the general attractiveness of the market. The report includes price trend analysis for raw materials (palm kernel oil and coconut oil) and natural fatty acids from 2014 to 2023.

The study provides a comprehensive view of the natural fatty acids market by dividing it into end-user segments such as detergents, personal care, rubber, plastics, and others. End-user segments have been analyzed based on historic, present, and future trends, and the market has been estimated from 2015 to 2023 in terms of volume (kilo tons) and revenue (US$ Mn).

Regional segmentation includes the current and forecast demand for natural fatty acids in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa (MEA). Additionally, the report comprises country-level analysis in terms of volume and revenue for end-user segments. Key countries such as the U.S., Germany, Italy, the U.K., France, Spain, China, Brazil, and South Africa have been included in the study. Market segmentation includes demand for individual end-user in all regions and countries.

The report covers detailed competitive outlook that includes market share and profiles of key players operating in the global market. Key players profiled in the report include Emery Oleochemicals, Kao Corporation, Kuala Lumpur Kepong Berhad, OLEON NV, and Wilmar International Ltd. Company profiles include attributes such as company overview, number of employees, brand overview, key competitors, business overview, business strategies, recent/key developments, acquisitions, and financial overview.

Secondary research sources that were typically referred to include, but were not limited to company websites, financial reports, annual reports, investor presentations, broker reports, and SEC filings. Other sources such as internal and external proprietary databases, statistical databases and market reports, news articles, national government documents, and webcasts specific to companies operating in the market have also been referred for the report.

In-depth interviews and discussions with a wide range of key opinion leaders and industry participants were conducted to compile this research report. Primary research represents the bulk of research efforts, supplemented by extensive secondary research. Key players’ product literature, annual reports, press releases, and relevant documents were reviewed for competitive analysis and market understanding. This helped in validating and strengthening secondary research findings. Primary research further helped in developing the analysis team’s expertise and market understanding.

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